Investment funds active in Cyprus reach record high of €2.9 billion

Cyprus witnessed a historic record in the value of investment funds funnelled into the local economy at the end of June, reaching an astounding €2.9 billion, out of a total of €10.7 billion of funds based here, according to a statement released on Monday by the Cyprus Investment Funds Association (CIFA).

According to the association, the total assets invested in Cyprus currently stand at €2.9 billion, marking the highest level to date. This surge, the association explained, further fortifies the sector’s role in bolstering and diversifying the economy during a period of heightened uncertainty.

Investments in Cyprus accounted for 26.7 per cent of the total assets under management, totalling €10.7 billion at the close of the second quarter of 2023, reflecting a modest 0.42 per cent increase compared to the previous quarter.

These assets are managed by a total of 254 firms licensed by the Cyprus Securities and Exchange Commission, showing a 7.2 per cent increase in licensed companies within a year.

The sector with the highest investments from investment funds is shipping, amounting to €555 million, a 3.7 per cent decrease from the previous quarter.

The energy sector follows closely with €456 million, displaying a significant 25 per cent increase on a quarterly basis.

Financial technology (fintech) companies come in third with €108 million, marking an impressive 86 per cent quarterly increase, while sustainable investments attracted €72 million, remaining relatively stable compared to the previous quarter.

Andreas Yiasemides, President of CIFA, expressed his views on this achievement, stating that “the resilience and dynamism displayed by the Investment Funds sector serves as tangible evidence that with hard work and collaboration, much can be achieved”.

“The rise in Collective Investments during a period when the economy and corporate financing face significant pressures is clear proof of the commitment and determination we have shown in recent years towards sustainable sector growth,” Yiasemides said.

“We not only witness increased investments in crucial sectors of the economy, but we also continuously create new specialised job opportunities,” he added.